Taylor Wimpey (LSE:TW.) today released its half year results for the period ending 3 July reporting that the company has delivered a strong operational and financial performance despite Brexit fears.
The UK house builder reported a 9.1% in revenue growth climbing up to £1.46bn from £1.24bn. As a result of the boost in revenue, operating profits also grew 9.1% from £256m to £279m with an operating profit margin growth of 19.2%.
The firm announced that its order book grew by 16% to £2.2bn on top of a rise in completion rates that rose 3% from 2015 as its home prices also rose 5.8% averaging out to £238,000 per home. Pre-tax profit for the year ending 3 July increased by 13% to £268.8m from £237.2m.
Pete Redfern, Chief Executive, commented:
“We have delivered a strong operational and financial performance with continued growth in profitability, building over 6,000 new homes across the country during the first half of 2016”
In regards to the EU Referendum, the company said that current trading remains in line with normal seasonal patterns however could not comment on long term impacts the Brexit vote will have.
Pete Redfern further added:
“One month on from the EU Referendum, current trading remains in line with normal seasonal patterns. Customer interest continues to be high, with a good level of visitors both to our developments and to our website. We are monitoring customer confidence closely across a number of metrics, including appointment bookings, and these continue to be solid.
…..Whilst it is still too early to assess what the longer term impact from the Referendum result on the housing market may be, we are encouraged by the first month’s trading and by continued competitive lending from the mortgage providers as well as the positive commentary from Government and policymakers”
Taylor Wimpey revealed that it remains ‘fully committed’ to its dividend policy and confirmed it will pay 11p per share in 2016 rising to 13.8p in 2017. Both of these include a ‘special dividend’ of £300m which equates to 9.2p per share to be paid July 2017.
The results boast a huge increase in market confidence for the company as the immediate aftermath of the EU Referendum saw its stock plummet up to a third of its value.
At 10:44am BST Taylor Wimpey traded at 151.30 + 6.40 (4.42%)
27/07/2016